Bill > SB185

This bill declares a state of financial exigency at Kentucky State University (KSU), a public Historically Black College or University (HBCU) and 1890 land-grant institution, for five years or until its finances are declared stable, and establishes new oversight and operational requirements for the university during this period. KSU will be a four-year residential polytechnic institution focused on technical, industry-based applied learning aligned with workforce needs, and will require prior approval from the Council on Postsecondary Education (CPE) for any expenditure of $20,000 or more, including purchases, contracts, or personnel actions. The university must provide monthly financial reports to the CPE, which will then provide quarterly updates to the Governor and Legislative Research Commission, and KSU must cooperate fully with the CPE's financial oversight. All financial transactions must be reported and reconciled monthly in the Enhanced Management Administrative Reporting System (EMARS) starting July 1, 2027, and KSU cannot incur a budget deficit during the declared financial exigency. Furthermore, any organization that has entered into a public-private lease agreement with KSU is prohibited from transacting business or entering into contracts with KSU or any other state entity. The bill also mandates a review of KSU's academic programs for long-term viability and alignment with its polytechnic mission, with a proposal for program maintenance or closure to be submitted to the CPE by June 1, 2026, and any necessary substantive changes to be submitted to the Southern Association of Colleges and Schools Commission on Colleges (SACSCOC) for approval by July 1, 2026. For five academic years starting in 2026-2027, KSU will offer no more than ten academic areas of study, excluding exclusively online programs, programs in the college of education, and those deemed essential to its polytechnic mission by the CPE. During the financial exigency, the KSU president has the authority to terminate any employee, including tenured faculty, with 30 days' notice, retaining only necessary staff to support an enrollment target of at least 1,000 in-person students and maintained programs, though terminated faculty and staff can reapply for other positions. KSU must also adhere to SACSCOC instructions to maintain accreditation. The bill sets new undergraduate admission standards, requiring a minimum GPA of 2.5 and an ACT score of 18 (or equivalent), with provisions for discretionary admission for transfer students with at least 24 credit hours and a 2.5 GPA, veterans, graduates of nonpublic schools meeting the score requirement, nontraditional students with professional experience, and dual credit students. Individuals with outstanding balances to KSU exceeding $1,000 for more than 60 days will be barred from admission or readmission, with exceptions for those on approved payment plans. The KSU president has sole discretion over student admissions and enrollment during the financial exigency, provided admission criteria are met. KSU must submit quarterly reports to the CPE detailing outstanding debts over $1,000 overdue for more than 60 days and collection efforts, with the CPE providing annual updates to the Governor and Legislative Research Commission. KSU is also required to diligently attempt to collect debts, refer debts over $1,000 overdue for more than 90 days to the Department of Revenue for collection, and has the right to intercept federal and state income tax refunds to satisfy debts. The Department of Revenue cannot decline withholding tax refunds for debts referred by KSU. Finally, the bill removes outdated language regarding the historical designation of KSU and its role as a four-year residential institution, and it states that KSU fraternities and sororities in good standing will maintain their charter recognition, with the board of regents able to establish policies for periodic review of student organizations consistent with other public universities. An emergency is declared, making the Act effective upon passage.

Budget and Finance

https://apps.legislature.ky.gov/record/26RS/sb185.html